With the new year upon us (along with the lure of spring house-hunting season) your to-do list may include the purchase of a new home.
If so, there are a few important things you should bear in mind as you start your search.
Consider these tips from financing professionals:
Know your credit profile. Nothing is more important than your credit profile in qualifying to purchase a home. A good profile puts you ahead of the game. Talk to your mortgage professional to see what you need to do, if anything, to put you into the ideal home financing position. This may include paying down – or paying off – debt. This may take time, so the earlier you can get input from your mortgage pro, the better.
Know what you can realistically afford. Before starting the home-buying process, establish what you can afford now, and most important, what you may be able to afford should family, interest rates, or employment status change. Having a clear picture of what you are able to pay for housing, month-in and month-out and under various scenarios, is essential so you can confidently proceed with the home-search process.
Be patient. Chances are the purchase of a home is the most important decision you will ever make, especially if you’re a first-time buyer. There are many steps on the path to home ownership, and obtaining financing is just one part of all of this, albeit one of the most important. Take everything one step at a time, be patient, and all will fall into place.